16. The function of conducting inspections and audits of commercial banks is performed by which department of the RBI?
a) Department of Banking Regulation
b) Department of Currency Management
c) Department of Supervision
d) Department of Payment and Settlement Systems
17. Which of the following statements is true regarding the RBI’s role as a banker to other banks?
a) The RBI only deals with public sector banks
b) The RBI provides financial services only to scheduled commercial banks
c) The RBI provides financial services to all types of banks in India
d) The RBI acts as a banker to banks located only in metropolitan cities
18. The Reserve Bank of India acts as a lender of the last resort. What does this mean?
a) It lends money to individuals and businesses during a financial crisis
b) It lends money to banks when they have exhausted all other sources of borrowing
c) It lends money to the government during budget deficits
d) It lends money to foreign banks operating in India
19. Which of the following is NOT a form of borrowing for banks from the RBI?
a) Repo operations
b) Marginal Standing Facility (MSF)
c) Wholesale lending
d) Liquidity Adjustment Facility (LAF)
20. When commercial banks face a shortage of funds, they can borrow from the RBI at which rate?
a) Repo Rate
b) Reverse Repo Rate
c) Bank Rate
d) Statutory Liquidity Ratio (SLR)
